and some other things. the 6.7 million that is allocated for this project, 22% is going to be used for pilot project for the free muni for youth. the other 76%'s going to be used for maintenance. i don't know why. supervisor scott wiener is youth. this is something that we should consider as an important issue for our community. looking at the demographics, in terms of people opposing this project, just white women, rich, and majority of people of low income folks here, they support this project. i don't believe that this is something that is unsustainable.

i think that the equity is there. there is funding for it. it's a pilot project that we can go forward and have it move -- be implemented. my last thing is that we should change the way we think in this city. this city is for everybody. we have to recognize san francisco values. we have to support everyone, not just blacks, latinos, asians, lives here. the way the debate was going, it's so racist and prejudicial. we have to stop the discrimination thing in the ci city. >> supervisor wiener: is there any additional public comment? okay. mr. chairman, may we close public comment?

public comment is closed. i want to thank everyone for coming out today. and i think that there is a lot of common ground in terms of the desire to have a great public transportation system. we may have sometimes different perspectives on how to get there, but there is a significant number of -- a significant amount of common ground. in terms of the resolution that we have before us today, i think it speakscj::4" for itself. it is an effort to put us on record, stating that money that is eligible to maintain this system and to reverse muni's downward spiral is money that should be used for that purpose, to increase the reliability of the system, to fix the vehicles, that needs to be job number one for muni. and so that's why i drew this resolution and why i support it

today. believe we should put it out to the full board. colleagues, are there any additional comments? supervisor olague. >> supervisor olague: since i was across the hall and overhearing the proceedings, i just thought i should weigh in and reiterate my support for free muni for youth. i think that it's really more of a philosophical issue here. i don't think that any person, anyone under the age of 18, where education is compulsory, should be required to pay for transportation to get to school. i believe that free muni for youth should apply to all income levels, not just low income levels. and i believe that one of the unique things about san francisco is that we have a lot of resystem so we do not have neighborhood schools. so so many young people and teenagers are forced to

transport themselves from one end of the city to the other, across town, and many of them don't own cars, and we want to encourage transit-first city, then we're kind of grateful maybe that students aren't using their cars. but i would say the bikeways aren't as exactly as fof is caitd as they could be. it's not like people can necessarily use the option of walking across town to school, or taking their bikes across town to school. i'm not saying that this is a replacement for the yellow bus system but certainly we see that yellow buses are not being used as often. so therefore i believe that we do need to provide some assurances that students will be arriving at school, and on time. recently, at the school board committee, the school -- a couple of trustees, and as members of the board of

supervisors have a committee, and we discuss issues that affect students. and one of the issues that came up was the achievement gap among african-american teenagers and latino teenagers is extreme. i believe that less than -- and i think i'm not exaggerating this for sure. i may be understating it, that 80% of african-american teenagers, in high schools, are not prepared to graduate in the 70 percentile for latino students. that's extreme and horrifying when you think about it. anything that's going to encourage young people to go to school, which i think in this means providing them free transportation is something we should be encouraging. also, i ride the 24 and divisadero on a couple mornings of the week. it's always packed with people who are trying to get to school with their children.

and i believe that there are issues that -- i think free muni for youth is a no-brainer. it should just happen. i think every city across the country should provide free transportation for young people who are in schools, and education should be something ta we should be prioritizing. it's deeper than just providing a bus ride to school but lack education is something we just don't value enough in this culture. also, i think that some of the things that we need to look at around muni is the safe passage. because in the mornings, sometimes i see different parents or different guardians waiting with their grammar school aged child, going to take the 24 divisadero to their destination and it just -- like i said, it's overcrowded and its definitely -- one gets the sense that maybe there could be issues around safety and security for

young people as they're transporting themselves across town. again, because we don't have neighborhood schools i think that it's our obligation as a city to make sure that we provide free transportation for folks, period. so, again, i think that it's a no-brainer. i think it has to do, really, ultimately, with our commitment to educating our citizens and i think that this is just another example of how we're not prioritizing education for people in this culture. so i support free muni for youth, and for all youth, not just low income youth. and just want to thank everyone for coming out again, and hopefully -- again, there was a muni driver but i don't blame the drivers at all, in fact i empathize with them because they're the ones that have to be cop and be everything there. and i think that they have like

a lot of issues that just aren't fair, that are shouldered on them. so this definitely is not an attack to the drivers. in fact, i think, yeah, we could look for ways to support them more. >> supervisor wiener: president chiu. >> supervisor chiu: thank you. first i want to thank everyone who has taken part in today's conversation, for talking about these important issues. i think we can agree that muni has significant challenges and that there are numerous worthy investments that we ought to make improvingq.jpc6ñ it. i want to thank supervisor wiener for focusing on maintenance and capital. over the years i have made exactly the same point. muni is underfunded in many areas, particularly in its capital operations. we need to focus on it and because of that i think it's appropriate, as our mta director has proposed that over 75% of the funding source is going to capital needs. 5.1 million out of 6.7 million of the transit performance

initiative. all that being said obviously i do alsoúq%( f5 agree that addrg the plight of young people and students on muni is very important. i want to thank all of the community advocates who have, for the past two years, have been working to move this issue forward including parents and students that we've heard from today in my own district. i will have and will continue to support free muni for youth. as i stated before, this is a policy that is free muni for low income youth. i think it's important to build a ridership with a new generation of san franciscans. when i was in high school i regularly rode public transit and it's one of the reasons why it's a main mode of my own personal transit today. i think it's important that we develop these habit among young people. i think it is a partial response to the massive cuts we've seen in our yellow school bus programs, not a complete response, not a perfect response but it's far better than no response at all. now i would prefer that this resolution acknowledge the importance of prioritizing both

the capital needs that we have as a city and the ridership of young people and really reflect what mr. risken, our mta director stated he will be proposing to his mta commission. i would support an amendment that would do this to this resolution, otherwise i think the language of the resolution is really forcing a bit of a false choice and a false dichotomy to us. but i understand that it's likely that our two colleagues on the committee today will not support that. so unless i hear differently, what i would suggest is that we move this item out of committee without recommendation, a majority of the board of supervisors has already stated their support for free muni for low income youth, and i think it's appropriate that we have this discussion at the board. with that, i'd like to propose that we do that and prove it without recommendation. >> supervisor elsbernd: take my moment now. just reiterate, again, i've said it repeatedly for the last few

years i don't see this ace the highest and best use for our transit dollars. to president chiu and director risken you've made the point that this is a false dichotomy. you're saying that because you're uncomfortable. we are in a budget. there is a limited amount of money. you have budget choices. it's yes or no. it's a false dichotomy in that there are a bunch of other choices not in front of us but its not as if we have unfunded dollars or we have as much money as we want to spend. we don't. public works department, there were a number of projects i would like to see funded and the response was we don't have money. i should have said that's a false dichotomy, i think we can do something. you know exactly what we have. you have a certain amount of money and much more today. i won't be around to see it. you've boxed yourself in. you said your budget will hold for the next two years and you won't need a supplemental.

i hope those of you in the next two or three years remember that comment. all of the risky revenue assumptions you have made in your budget, that all will come through, more power to you. and if they do take me to las vegas because you would be one lucky guy. respectfully there are a lot of other higher and better uses of the public dollars than this program. and much more, i'm just so surprised -- and there was a surprise to learn today -- that your budgeting for 12 months when you only have five months in hand. we don't know for sure how much we will get from the mtc next year. i find that borderline -- i mean irresponseible. i've never seen that. mr. risken i'm really surprised that you would put that forward. maybe if you had all 12 months in hand that would make sense. you only have five months. i'm surprised by that and frankly disappointed. so anyway, we've heard the

points. president chiu i know where the votes are at the board, but we are a committee of three. the majority feel a certain way. i'm quite comfortable sending this forward to the board with recommendation, and what i think it really does, the board will probably approve this. but we got kind of ambiguous statement from the mayor's office today and over the last year we've gotten a very ambiguous statement from the mayor throughout. i can't wait to see what the mayor does with this. he's made it clear i will only support this if we use only money can be used for operations. i've heard him say we're only going to do this if it's money specifically designated for this program. that's not what these dollars are. these dollars could be used for anything. if there are four votes at the board let's see what the mayor does. be fascinating to see from my point of view. with that, supervisor wiener, you're right, i will let you decide how we proceed. >> supervisor wiener: you know, i want to agree with

supervisor elsbernd in disagreeing with the statement that this is a false dichotomy. i think that -- i wish that transit funding were not a zero sum game. we have very, very limited transit funding. and we tried very hard, locally. the federal government has limited what it is willing to provide to us. the state government has just been disastrous in terms of reductions in transit funding. and so we have a system that is absolutely operating at an unacceptable level. i mean less than 60% on time performance, the level of missed runs, the buses that break down, the lrvs that break down and we don't have a replacement lrv most of the time. and over the years, as i said at the beginning, we always have, you know, good ideas for different ways to use transit dollars that are not improving

the reliability of the system. so i do think that the resolution as stated is appropriate and i would support putting it out with akhj=x posie recommendation. >> supervisor elsbernd: take a roll call on that motion. >> alisa miller: there will be as a committee report. on the motion -- >> supervisor wiener: the motion would be to move the item out with recommendation as a committee report. >> alisa miller: on the motion to recommend this out as a committee report, supervisor chiu, no. supervisor ween, aye. supervisor elsbernd, aye. >> alisa miller: we have two ayes and one no. >> supervisor elsbernd: the item will go forward to tomorrow's agenda with recommendation. thank you to everyone who has come. madam clerk, read item 3. >> alisa miller: item 3, resolution authorizing the recreation and park department to enter into a lease with woodhouse marina green for operation of a restaurant. >> supervisor elsbernd: is there anybody in the overflow room who's been waishtly waiting now is the time to come and thank you for doing that.

we will take a few minutes for everyone to clear out.

>> supervisor elsbernd: before we get to item 3, madam clerk you reminded me we failed to dispose of item 1. president chiu can we do a motion to table item 1? >> supervisor chiu: yes. >> supervisor elsbernd: that will be the order. now to item 3, madam clerk you've read the item. supervisor ferrell that is your item. would you like to make opening comments? >> supervisor farrell: thank you for those of you who stuck around in different parts of city hall for this item. this is a resolution approving a lease at the old marina degaussing station for woodhouse to operate a restaurant. i will just say that as a kid who grew up running around the marina green and doing laps since i've been 4 years old the degaussing station has always been a linkup chained up and boarded up piece of property on

the north side of marina green and to be quite honors more than anything was a collection place for pigeons. when i first heard about this from rec and park about reusing it i asked them to get community support for this project and do the outreach notice. woodhouse and rec and park have worked with the community for over two years on outreach for the issue and in terms of the lease itself. i know there are objections to it. i know there is some split in the neighborhood. but i will say that the rec and park department has shown good faith and woodhouse to be a good neighbor with respect for surrounding wildlife in proximity to the restaurant all of which is reflected in the lease agreement. about the project itself, woodhouse, so everyone knows, is locally and family-owned. they -- much of their products

locally the project will of course create local jobs and repurpose an abandoned eyesore on the city's waterfront. but i think also make it turn what has been a closed down piece of property on the marina green, and once again restore it to where it should be. this is received a favorable report from the budget and legislative analyst's office, received unanimous approval from the rec and park department, and i think, over all, despite concerns, is a good project to move forward. with that i know our rec and park department is here and present. cassandra, who has been working on this project, ask you to speak about it. >> thank you very much, supervisor ferrell. supervisors, chair elsbernd, cassandra costello with the park department and am pleased to present the negotiated lease agreement between woodhouse marina green and the city.

can i have the powerpoint plea please. so just a little bit of background. iq,::hñ know supervisor ferrell touched on this but the degaussing station has been vacant for decades. it's comiess of a 450 square foot outdoor fenced in area sitting on the northern edge of marina green where fillmore would cross the park. it was original will i property of the u.s. navy and has sat idle for money years. the department issued a request for proposals in april of 2011 for the operation of a restaurant at this site. the department thought a professional restaurateur to serve visitors and locals alike. as with all of ourd bidding processes we convened an independent selection panel which unanimously supported the

selection of woodhouse and on that selection panel we had a member from the community serve in that capacity. last november, our commission, the rec and park commission, unanimously approved the selection of woodhouse and in september they recommended lease agreement to the board of supervisors for your consideration. as was mentioned, this is a family-owned business. there's two other locations, one on fillmore street and one on castro owned by the mcnifns family. the father and three daughters. james and rowen acting as partners. it truly is a family affair he here. wanted to go over basic lease information. we have a 10 year proposed term with two five year options to extend.

and again the permitted use is for operation of a restaurant. the minimum annual rent is $110,000 to be paid to the department with annual adjustments, in cpi. the percentage run negotiated 10% of revenues over 2 million and 12% of revenue over 2 million with projected rent payment to the department of over 1.7 million in the initial 10 year lease. security deposit of 20,000. the department is proposing to issue a number of rent credits to partially credit the lessee for proposed capital improvements. in addition to a little over 36,000 in waived rent to compensate time to secure the necessary permits. in addition the rec and park department would provide woodhouse with an additional rent credit for unanticipated cost that are over 50,000 for a maximum cap of another 50,000 rent credit.

in addition, the department is requiring a maintenance fund of the lesser of 1% or 20,000, starting in year six of the lease. the purpose of the maintenance fund would be to ensure the quality of the building and maintenance needs of the building for future years. woodhouse proposes to operate a counterservice high quality affordable seafood restaurant with seating of up to 25 indoors and 50 outdoors. minimum hours of operation, 11 am to 7 pm however they have the option to open for breakfast should they consider a demand for that and they can stay open until 9 pm seven days a week. i want to know that the closing hours will be reviewed after the when the department can analyze and measure the effects the restaurant has on the surrounding community. the department will use the following criteria. this was developed jointly with woodhouse marina green and the

marina community association. we're looking at noise complaints above department of health standards, failure to follow hours of operation, the impact of the restaurant lighting on the surrounding community, the garbage in the vicinity of the restaurant as well as any alcohol beverage control violations. conversations with the community, woodhouse will install blackout curtains on south facing walls to ensure minimal light pollution, ainstall neighborhood sensitive lighting. this lease will prohibit all amplified sound and they will stall only minimal signage as they install signage that giveso the history of the degaussing station, just a historical sign. wanted to show you for those of you who have not seen the degaussing station, the current

condition, as you can see it is fenced in, has been abandoned for many years, it is in fairly poor quality. which leaves me to capital improvements, the lessee proposes to put over 655,000 worth of capital improvements into the building, including stabilizing the building, and we've been working closely with bcdc and at their urging they've asked us to move the building 13 feet south so we can have the contiguous bay trail along -- right now you have to go around the building so this would allow for contiguous bay trail access. replacing carpentry roofing patios and doors, paving to match the existing seawall and wind screens, all new electrical plumbing, painting, kitchen equipment and stainless, up grading sewer, and=t$jcdç gasesd

kitchen and furnishings. this gives you an idea -- you can't see the bottom photo. well there's two images here. this gives you an idea of what the rendering will show, what that building will look like once the project is done. as you can see it has been moved 13 feet off the seawall. we are also proposing bike walks. we're working on placement of bike racks and there will be a public restroom which was not that concludes my brief presentation. i did want to leave -- lisa would you put the screen up on this you side -- end here with a slide that shows the community outreach as part thf project. supervisor ferrell did dutch on this. i wanted to make sure that the names of the organizations were shown here as well as the amount of public hearings and press. there's been on this project. so i'm more than happy to answer

any questions. and if you have, thank you so much for your time this morning. >> any questions? thanks very much. colleagues, do you have any questions of the budget and legislative analyst has prepared a report as well. okay. >> good morning, chair elsbernd, members of the committee, supervisor ferrell -- campbell from the budget and legislative analyst office. she covered most of the terms of the lease. i want to point out on page 3.7 of our report this revenues generated -- estimated revenues over the first 10 years of the lease would be about 1.7 million, including 196 million in rent credits in rent waivers that would be given to woodhouse in consideration of the tenant improvements. i want to point out, these funds would be deposited into the

yacht harbor fund. these are not general revenues to rec and park. i would like to state we have made recommendations#%( 3 to cy and correct some of the language that was incorrect in the draft we received. my understanding that language has now been corrected and the language is before you is the correct language so we'll withdraw that recommendation. otherwise we recommend approval of the proposed resolution. >> thank you. any questions? seeing none, why don't we move on to public comment. i am going to read a number of names that i have cards here. we'll do these cards first. if people who have not submitted a card, you can speak afterward. everyone is going to have two minutes to speak. with that, i'll call a number of folks. kelly, calfield, gir ardo,

diamond, and harris if you would line up over here to the side. ms. kelly, if you want to come up first. >> there's a gentleman that needs to leave with childcare issues so i was going to let him go first. >> that sounds like a great idea. come on up, childcare or otherwise, disabled issues,z@:% please come up. >> thanks. supervisors i'm a dad, i live in the marina. my son and i use the -- field extensively. i love -- when i heard there was a proposal to put a public food facility there, everything on the water there is private. so if you're there, i coach soccer on that field. it's almost impossible to have any kind of, you know, being able to stay and enjoy the water park longer. so for a family that lives in the city, wants to stay in san francisco, it's so great that you would consider having this. i've been a patron of the mcgiven restaurants for